What resources does an International Internet retailer need other than merely a storefront on the Internet? Does it require fewer physical, financial, and human resources than a traditional retailer, or just as many? Explain.
An International Internet retailer requires several resources in addition to a storefront on the internet. Let's break down the key resources needed:
1. Physical Resources: While an online retailer primarily operates in the digital realm, there are still physical resources necessary to run the business. These include warehouses or fulfillment centers to store inventory, shipping infrastructure, and possibly physical storefronts or offices for customer service or administrative purposes.
2. Financial Resources: Online retailers typically require significant financial resources to establish and maintain their operations. These include initial capital for website development, software, hosting, and online security. Ongoing expenses involve inventory management, payment processing, marketing, customer support, and international logistics.
3. Human Resources: An international internet retailer needs a team of skilled professionals to manage various aspects of the business. These may include website designers and developers, IT specialists, marketing experts, customer service representatives, supply chain managers, logistics coordinators, and financial analysts. Additionally, multilingual staff for global support may be necessary.
Now, in terms of the comparison with a traditional retailer, an online retailer may require a different mix of resources but not necessarily fewer. Here's why:
Physical Resources: Traditional retailers need physical stores, inventory displays, and related infrastructure, while online retailers require warehouses, shipping facilities, and tech infrastructure. While the scale of physical infrastructure may vary, both types of retailers need physical resources.
Financial Resources: Both types require financial resources, although the distribution may differ. In an online setting, investments might be primarily focused on website development, digital marketing, and global logistics, whereas a traditional retailer may allocate more towards rent, store design, and maintenance. Similar levels of financial investment are required, but the allocation may vary.
Human Resources: Both types need human resources, with potentially different skill sets. Traditional retailers require sales associates, cashiers, store managers, and retail staff, while online retailers require web developers, digital marketing specialists, data analysts, and supply chain experts. The number of human resources needed may vary based on the size and complexity of the operation, but the overall requirement remains significant.
In conclusion, an international internet retailer requires a mix of physical, financial, and human resources, just like a traditional retailer. However, the specific allocation and scale of these resources may differ based on the business model, customer reach, and operational needs of each type of retailer.